If you previously ran this migration and it failed, the schema version might be set to the migration that you are running. i.e. This migration is being ignored.
Try: rake db:migrate VERSION=X where X is a previous migration.
To roll the whole thing back: rake db:migrate VERSION=0
Or if you're using sqlite3, simply delete the file and run the migrations again
hth
create_table :peoples do |t|
On a different note ActiveRecord would probably be happier with a singular "Person" and plural "People"